Planning More Than Your Money
I savoured every moment of the Christmas break. How could I not when eating, sleeping, movie-watching and hanging out with family and friends occupied most of my time? So I couldn’t help but fantasize about how great it would be to live out my retirement as a lady of leisure.
While it seems appealing to me now, the reality when the time comes may be something very different. For many the transition from the working world is not a smooth one – from both a financial and emotional standpoint. So how do we get ready?
From a financial perspective, putting your finances in order is necessary. The Wall Street Journal offers a simple list on how to do this. An interesting article on the subject also speaks to being emotionally ready, and notes as follows:
· Think in terms of retiring to something, not retiring from something - "The Journal quotes Jonathan Guyton of Cornerstone Wealth Advisors in Minneapolis: If your definition of retirement is framed in terms of what you are leaving, you are setting yourself up for a much more difficult transition emotionally. Even if it’s just some relatively small thing that you are energized about and this is something you get to do right now … you generally do much better.”
· Phase into retirement – "first scaling back your hours and responsibilities, or maybe taking a part-time hobby job, so that you don’t suddenly have an endless amount of time to fill. This strategy has the added benefit of keeping some wage income, which will help stretch your nest egg."
Another idea the author cites is “practice retirement”, which entails staying on the job longer (either full-time or part-time), but instead of saving your income, use it to take vacations, fund a hobby or indulge in other ways that will help you figure out how you want to spend your retirement.
Enjoy the weekend!
Natalia R. Angelini - Click here for more information on Natalia Angelini.
